AMD achieves lower sales but expects strong growth from Ryzen and Epyc CPUs

AMD posted lower sales, mainly due to underperformance in the departments responsible for the Ryzen and Epyc CPUs. The figures do not include the sales of the Ryzen 3000 processors and Navi video cards.

Revenue in the Computing and Graphics segment, which includes Ryzen CPUs and Radeon GPUs, reached $940 million in the second quarter of this year. That is a decrease of thirteen percent compared to the same period a year earlier. AMD attributes this drop in revenue to lower GPU sales, which was partly offset by processor sales and data center GPU sales.

According to AMD, the average price per CPU sold was higher than last year, but lower than during the first quarter of this year. The manufacturer attributes the latter to a greater mix of mobile processor sales. The average selling price of GPUs was also higher than a year ago; that was caused by the sale of GPUs for data centers.

The business unit responsible for, among other things, the Epyc server processors, Enterprise, Embedded and Semi-Custom, also had lower sales. Compared to the second quarter of 2018, this decreased by twelve percent to 591 million dollars. This segment did achieve higher operating income of $89 million. In the previous quarter and the second quarter of 2018, it was still around $69 million.

AMD’s total quarterly revenue was $1.53 billion, a 13 percent decline from the second quarter of 2018. Net profit is $35 million, compared to $116 million in the same period last year.

AMD CEO Lisa Su says she is pleased with the financial performance, pointing directly to “three 7nm product groups.” “We have reached a significant turning point for our business as our new Ryzen, Epyc and Radeon products represent the most competitive manufacturing portfolio in our history. We are well positioned to grow significantly in the second half of this year,” said the top woman.

For the next third quarter, AMD expects revenue of approximately $1.8 billion, which would be a nine percent increase from a year earlier. In the past second quarter, the revenues from, for example, the now released Ryzen 3000 processors and the RX 5700 video cards could not yet be included; the second quarter ran until the end of June.